Prosecutors Made an Abrupt Search and Seized Documents

In line with the ongoing investigation on illegal fundraising scandal for the presidential election campaign, the Central Investigation Department of the Supreme Public Prosecutor’s Office made a thorough search of the main office of LG Home Shopping in Munrae-dong, Youngdeungpo-gu in Seoul on November 18, and retained financial documents to go under an in-depth analysis on the company’s possible allegation.

LG Home Shopping became the first case, after SK Group, to receive a search and have the company’s financial reports seized by the prosecutors since the prosecution vowed on November 3 to expand its investigation to other large conglomerates.

Moon Hyo-nam, an investigation planning official of the Supreme Public Prosecutor’s Office, said, “We have previously requested LG Home Shopping for submitting the relevant documents but they refused to do so, and that is the reason why we executed an in-depth investigation by seizing their office documents.”

The prosecution reportedly started its probe after receiving some clues that LG Group might have arranged secret funds through its affiliate LG Home Shopping, and offered an illegal presidential campaign fund during the presidential election last year.

Accordingly, the prosecution will summon the chairman of LG Group, Koo Bon-moo, in the near future, who has been banned from leaving the country, and question him on the suspicions of collecting secret funds, the amount of money delivered to politicians and about concrete transmission details.

In addition, the prosecution called Oh Nam-soo, president of a planning management division of Kumho Group, and interrogated him for two days on the size and the delivery process of illegal political funds which was sent to the political parties during the presidential election last year.

The prosecution has also grasped some parts of evidences that other than Samsung, LG, SK, Hyundai Motors, Lotte and Kumho Groups, there are also Hanwha Group and more companies who had offered illegal funds to politicians and therefore, the prosecution will enlarge the scope of probe to the top ten companies.

On top of that, the prosecution is searching for an allegation on Rep. Chung Dae-chul of the Uri Party, who was then chairman of election planning committee of Millennium Democratic Party during last year’s presidential election, on suspicion of using some part of his Party’s fund inappropriately.

Meanwhile, the prosecution has captured the fact that some ten millions of money out of 50 million won (five checks of 10 million won), which had been offered by Nouveau Korea, a sales agency of a shopping mall “Good morning City,” to Rep. Chung as a company donation last December, did not properly go through accounting process in the Millennium Democratic Party. As soon as tracking procedure for the usage of checks is completed, the prosecutors will summon Rep. Chung and investigate on improper use of the MDP’s official money and a rumor on 20 billion won of fundraising.

Concerning the investigation on the scandal of President Roh Moo-hyun’s close aides, the prosecution has searched five places – Changshin Textile Company, Busan and Seoul office, the chairman’s residence and Cygnus Country Club located in Chungju city of Chungcheongbuk Province. The Chairman of Changshin Textile Company is Kang Guem-won who was involved in having offered 950 million won to Sun Bong-sul, president of Jangsoochun Company, who was known as President Roh’s hometown friend, but currently is being prohibited from traveling overseas for suspicions. The prosecution will also summon Kim Sung-chul, chairman of Busan Chamber of Commerce and Industry, for the allegation of handing over some 100 millions won worth valuables to former presidential secretary Choi Do-sul along with three or four businessmen in Busan city. Meanwhile, the prosecution sent a notice to Rep. La Oh-yeon of the Grand National Party (GNP), who was then-chairman of a supporting committee of GNP during the presidential election last year, to present to the prosecutor’s office on November 20.

Tae-Hoon Lee Jin-Kyun Kil jefflee@donga.com leon@donga.com